IMF Warns Trump's Trade War Could Drag Down Global Output

BlockBeats News, October 14th: The International Monetary Fund (IMF) on Tuesday raised its 2025 global economic growth outlook, citing a milder-than-expected impact from tariffs and the financial environment. However, it also warned that the Trump trade war could significantly drag down global output.

The IMF stated in its "World Economic Outlook" that recent trade agreements between the United States and some major economies have averted the harshest tariff measures threatened by Trump. This has prompted the IMF to raise its growth forecast for the second time since April, now expecting:

- Global real GDP growth of 3.2% in 2025, up from the July forecast of 3.0%;

- A projected growth rate of 3.1% in 2026, unchanged from the July expectation;

- US GDP growth of 2.0% in 2025, slightly higher than July's 1.9%;

- Growth of 2.1% in 2026, also a modest increase but significantly lower than 2.8% in 2024.

The IMF stated that US growth has benefited from tariffs lower than expected, the fiscal boost from Republican tax reforms, loose financial conditions, and the artificial intelligence investment boom. (Golden Finance)